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Household savings double in one year

Household savings increased by €4,772 million to €9,177 million last yearEYESWIDEOPEN/GETTY IMAGES

Household savings almost doubled last year as the Central Bank’s new rules on mortgage lending meant that first-time buyers had to try harder to save for a deposit.

Data released by the Central Statistics Office yesterday showed that household savings had been rising since late 2014 and that total savings in the economy also increased by almost a third last year.

According to John McCartney, director of research at Savills Ireland, this may be down to tighter mortgage lending. “Since the start of 2015, new mortgage rules mean that home buyers can borrow less,” he said. “Therefore they have to save bigger deposits. In this context it is not surprising to see a rise in household savings.”

Mortgage approvals for first-time buyers have fallen by…

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